The Justice Department and North Carolina filed dueling lawsuits Monday over the state’s controversial “bathroom” law, with the Obama administration answering an early-morning lawsuit filed by Republican Gov. Pat McCrory with legal action of its own.

The DOJ's suit was filed after McCrory, in his lawsuit, accused the administration of a “baseless and blatant overreach” in trying to get the policy scrapped.

"It's like Big Brother has all of a sudden descended on our state in a very coordinated political way," McCrory said tonight On the Record, as his state faces losing federal funds for roads, education and other programs.

He said that with this legal action, the DOJ is effectively making bathroom rules for every employer in the country with over 15 employees and letting gender identity be the deciding factor in which bathroom they use.

McCrory said he believes that U.S. Congress needs to take up the issue.

"We need to figure out what gender identity and gender expression is. And the U.S. Congress kind of ignored it, and now the Obama Administration is interpreting existing law. The word 'sex' has now become not just sexual orientation but also gender identity and gender expression."

He added that he didn't know a problem existed until several months ago.

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